Nestle to close U.K. pension plan
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Nestle U.K. announced Thursday it would close its defined benefit pension scheme, replacing it with a defined contribution plan.
“Unfortunately, the costs and risks of providing a defined benefit scheme have continued to increase substantially in recent years,” Nestle executives said in a statement. “With regret, the company is therefore proposing its closure and replacement with one of the most attractive defined contribution schemes available.”
The change will affect approximately 7,600 employees in the U.K.
The size of the plan could not be determined immediately. According to the company's 2014 audited financial statements, total DB assets for its European region (which also includes Germany and Switzerland) were $16.9 billion.
Timothy Pollard writes for Pensions & Investments, a sister publication of Business Insurance.
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